CODIPA.PFD (Compass Diversified Holdings) Beneish M-Score : -2.07 (As of Dec. 12, 2024)

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What is Compass Diversified Holdings Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.07 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Compass Diversified Holdings's Beneish M-Score or its related term are showing as below:

CODIpA.PFD' s Beneish M-Score Range Over the Past 10 Years
Min: -2.71 Med: -2.35 Max: -1.78
Current: -2.07

During the past 13 years, the highest Beneish M-Score of Compass Diversified Holdings was -1.78. The lowest was -2.71. And the median was -2.35.

Compass Diversified Holdings Beneish M-Score Historical Data

The historical data trend for Compass Diversified Holdings's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Compass Diversified Holdings Beneish M-Score Chart

Compass Diversified Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.78

-2.71

-2.27

-2.32

-2.22

Compass Diversified Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.39	-2.22	-2.30	-2.09	-2.07

Competitive Comparison of Compass Diversified Holdings's Beneish M-Score

For the Conglomerates subindustry, Compass Diversified Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Compass Diversified Holdings's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Compass Diversified Holdings's Beneish M-Score falls into.

Compass Diversified Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Compass Diversified Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0107

0.528 * 0.9

0.404 * 0.9445

0.892 * 1.1671

0.115 * 0.8977

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0706

4.679 * 0.072884

0.327 * 0.9596

-2.07

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was $412.69 Mil.
Revenue was 582.623 + 542.595 + 524.29 + 566.989 = $2,216.50 Mil.
Gross Profit was 274.578 + 259.114 + 241.827 + 246.307 = $1,021.83 Mil.
Total Current Assets was $1,524.55 Mil.
Total Assets was $3,961.41 Mil.
Property, Plant and Equipment(Net PPE) was $186.56 Mil.
Depreciation, Depletion and Amortization(DDA) was $147.52 Mil.
Selling, General, & Admin. Expense(SGA) was $613.54 Mil.
Total Current Liabilities was $361.22 Mil.
Long-Term Debt & Capital Lease Obligation was $1,763.69 Mil.
Net Income was 22.064 + -19.529 + -1.648 + 137.437 = $138.32 Mil.
Non Operating Income was 0.31 + -25.981 + -11.056 + -57.189 = $-93.92 Mil.
Cash Flow from Operations was -29.227 + -35.182 + -13.201 + 21.128 = $-56.48 Mil.

Total Receivables was $349.84 Mil.
Revenue was 521.065 + 486.889 + 483.933 + 407.201 = $1,899.09 Mil.
Gross Profit was 225.311 + 216.641 + 205.064 + 140.921 = $787.94 Mil.
Total Current Assets was $1,315.44 Mil.
Total Assets was $3,810.81 Mil.
Property, Plant and Equipment(Net PPE) was $203.51 Mil.
Depreciation, Depletion and Amortization(DDA) was $133.64 Mil.
Selling, General, & Admin. Expense(SGA) was $491.00 Mil.
Total Current Liabilities was $354.32 Mil.
Long-Term Debt & Capital Lease Obligation was $1,775.78 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(412.688 / 2216.497)	/	(349.839 / 1899.088)
	=	0.186189	/	0.184214
	=	1.0107

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(787.937 / 1899.088)	/	(1021.826 / 2216.497)
	=	0.414903	/	0.461009
	=	0.9

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1524.547 + 186.555) / 3961.414)	/	(1 - (1315.437 + 203.512) / 3810.812)
	=	0.568058	/	0.601411
	=	0.9445

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	2216.497	/	1899.088
	=	1.1671

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(133.644 / (133.644 + 203.512))	/	(147.515 / (147.515 + 186.555))
	=	0.396386	/	0.441569
	=	0.8977

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(613.54 / 2216.497)	/	(490.996 / 1899.088)
	=	0.276806	/	0.258543
	=	1.0706

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((1763.687 + 361.22) / 3961.414)	/	((1775.776 + 354.319) / 3810.812)
	=	0.536401	/	0.558961
	=	0.9596

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(138.324 - -93.916	-	-56.482)	/	3961.414
	=	0.072884

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Compass Diversified Holdings has a M-score of -2.07 suggests that the company is unlikely to be a manipulator.

Compass Diversified Holdings Beneish M-Score Related Terms

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Compass Diversified Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Compass Diversified Holdings (NYSE:CODIpA.PFD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CODIpC.PFD:USA CODIpB.PFD:USA CODI:USA

Address

301 Riverside Avenue, Second Floor, Westport, CT, USA, 06880

Website

https://compassdiversified.com

Compass Diversified Holdings is a diversified business conglomerate based in the United States having two groups: branded consumer business and industrial business. Branded consumer businesses are characterized as those businesses that capitalize on a valuable brand name in their respective market sector. It includes 5.11, Ergobaby, Liberty Safe, and Velocity Outdoor. Industrial businesses are characterized as those businesses that focus on manufacturing and selling particular products and industrial services within a specific market sector. The company has operations in the United States, Canada, Europe, Asia Pacific, and other International areas.